PCCI asks ERC, IEMOP to penalize WESM defaulters

The Philippine Chamber of Commerce and Industry (PCCI) urges the Energy Regulatory Commission (ERC) and the Independent Electricity Market Operator of the Philippines (IEMOP) to penalize members of the Wholesale Electricity Spot Market (WESM) who are defaulting on their payment obligations.

According to PCCI, these defaults result in costs being passed on to consumers through higher electricity prices and create financial risks for compliant market participants.

The business group noted that these non-payments distort market signals and effectively penalize those who fulfill their financial obligations.

PCCI pointed out that IEMOP has the authority under WESM rules to suspend and deregister members who fail to meet their financial obligations after receiving notices.

The PCCI is calling for IEMOP to implement a policy framework that ensures defaulters are held accountable and compliant members are protected from bearing the costs of others' failures.

Additionally, the PCCI pushed for greater transparency in the billing systems of retail electricity suppliers (RES) concerning WESM-related charges for contestable consumers.